Greggs reinvigorated his earnings outlook after a “significant recovery in sales” following the reopening of non-core retailers.
The bakery chain said the increase partly reflected “pent-up demand for the retail trade which has boosted footfall on the high streets.”
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Greggs stated that sales at constant scope during the period relaxation of restrictions April 12 were ahead of pre-pandemic levels in 2019.
Shares jumped more than 6% after the group said if there was “considerable uncertainty” its profits for the year could be around 2019 levels – which would be “significantly higher” than previous expectations.
This prompted an analyst to wonder if he would return the millions of dollars in government support he received over the course of the coronavirus pandemic.
In a business update, Greggs said total sales in the 18 weeks leading up to May 8 were £ 352million, up £ 72million from the same period a year ago, but 21 million pounds less than in 2019, before lockdowns that severely affected trading in 2020..
But the company – known for its sausage rolls, pastries and vegan pastries – underlined an improving trend in recent weeks.
In the 10 weeks to March 13, like-for-like sales were down 23.3% from 2019 levels. But in the next eight weeks, they were down 3.9%, boosted by the reopening of non-essential retailers.
Greggs said growth on a like-for-like basis since April 12 “has been positive,” without specifying the exact level of growth.
“In recent weeks, following the easing of restrictions across the UK, we have seen a strong recovery in sales levels,” the group said.
The Newcastle-based chain, which has 2,000 stores across the country, said it had made strides in both ‘walk-in’ sales …
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This notice was published: 2021-05-10 06:11:00